Reserve for Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2023

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Schedule of Reconciliation of Beginning and Ending Reserve Balances for Losses and Loss Adjustment Expenses (LAE)

The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses ("LAE") for the years ended December 31:

(In thousands)	2023		2022		2021
Reserve for losses and LAE at beginning of year	$	216,464	$	407,445	$	374,941
Less: Reinsurance recoverables	14,618		25,940		19,061
Net reserve for losses and LAE at beginning of year	201,846		381,505		355,880
Net reserves acquired during the period	14,049		—		—
Add provision for losses and LAE, net of reinsurance, occurring in:
Current year	141,191		99,372		97,256
Prior years	(109,649)		(274,076)		(66,199)
Net incurred losses and LAE during the current year	31,542		(174,704)		31,057
Deduct payments for losses and LAE, net of reinsurance, occurring in:
Current year	694		224		388
Prior years	10,752		4,731		5,044
Net loss and LAE payments during the current year	11,446		4,955		5,432
Net reserve for losses and LAE at end of year	235,991		201,846		381,505
Plus: Reinsurance recoverables	24,104		14,618		25,940
Reserve for losses and LAE at end of year	$	260,095	$	216,464	$	407,445

The following table summarizes mortgage insurance incurred loss and allocated loss adjustment expense development, net of reinsurance, IBNR plus expected development on reported defaults and the cumulative number of reported defaults. The

information about incurred loss development for the years ended December 31, 2014 to 2022 is presented as supplementary information.

	Incurred Loss and Allocated LAE, For the Years Ended December 31,																				As of December 31, 2023
(In thousands)																					Total of IBNR plus Expected Development on Reported Defaults		Cumulative Number of Reported Defaults (1)
	Unaudited
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	6,877	$	4,312	$	3,323	$	2,984	$	2,930	$	2,897	$	2,882	$	2,869	$	2,870	$	2,870	$	1	103
2015			14,956		9,625		8,893		8,439		8,461		8,323		8,410		8,434		8,435		7		232
2016					21,889		11,890		9,455		9,219		8,972		8,614		8,861		8,709		12		286
2017							38,178		16,261		12,202		11,488		11,249		11,550		11,196		34		403
2018									36,438		23,168		19,536		17,402		1,724		16,535		123		576
2019											50,562		39,085		23,649		24,223		19,455		370		626
2020													317,516		269,410		53,045		23,297		1,178		551
2021															97,526		38,551		16,567		1,028		415
2022																	99,372		48,593		3,414		1,648
2023																			138,617		10,792		12,342
Total																			$	294,274
(1) Cumulative number of reported defaults includes cumulative paid claims plus loans in default by accident year as of December 31, 2023.

The following table summarizes cumulative paid losses and allocated loss adjustment expenses, net of reinsurance. The information about paid loss development for the years ended December 31, 2014 through 2022 is presented as supplementary information.

(In thousands)	Cumulative Paid Losses and Allocated LAE For the Years Ended December 31,
	Unaudited
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	138	$	1,587	$	2,463	$	2,787	$	2,897	$	2,882	$	2,867	$	2,856	$	2,856	$	2,856
2015			544		3,610		6,960		7,535		7,961		8,055		8,226		8,335		8,337
2016					927		4,896		6,947		7,864		8,270		8,205		8,468		8,542
2017							633		5,370		9,156		10,257		10,536		10,620		10,704
2018									1,310		8,067		13,406		13,927		14,536		14,781
2019											1,288		8,049		10,717		12,392		14,064
2020													1,018		2,499		4,022		6,921
2021															388		856		2,916
2022																	224		3,209
2023																			517
Total																			$	72,847
All outstanding liabilities before 2014, net of reinsurance																			—
Reserve for losses and LAE, net of reinsurance																			$	221,427

The following table provides a reconciliation of the net incurred losses and paid claims development tables above to the mortgage insurance reserve for losses and LAE at December 31, 2023:

(In thousands)	December 31, 2023
Reserve for losses and LAE, net of reinsurance	$	221,427
Reinsurance recoverables on unpaid claims	24,004
Total gross reserve for losses and LAE	$	245,431

For our mortgage insurance portfolio, our average annual payout of losses as of December 31, 2023 is as follows:

Average Annual Percentage Payout of Incurred Losses and Allocated LAE by Year
Year	1		2		3		4		5		6		7		8		9		10
Average Payout	9	%	42	%	29	%	11	%	5	%	0	%	1	%	0	%	0	%	0	%